Term Life Insurance

Term life insurance, as the name suggests, provides life insurance coverage at a fixed rate of payments for a limited period of time, or term. If the insured dies during the term, the beneficiary of the policy will receive the death benefit income tax free. If the insured outlives the term of the coverage the premium payments will no longer be guaranteed at the prior rate, and the insured will either be without coverage or will have to obtain new coverage with different payments and/or conditions.

Term life insurance is the most affordable type of life insurance available for short term insurance needs. Unlike permanent insurance policies, such as whole life, universal life, variable life, or indexed life, term life insurance has no cash value.